Fiscal Decentralization in Thailand
Under the Decentralization Law 1999, Thailand commenced implementation
of f iscal decentralization more than 10 years ago. The program’s major objective
is to delegate f iscal authority from national administration to local administration.
It is the f irst time in Thai history to have a law specifying a framework, direction,
and most importantly; timing for f iscal decentralization. As the law accelerates the
f iscal decentralization process, many weaknesses have become apparent at both
policy and implementation levels of the program. Some leading Thai political
and academic f igures from different f ields have suggested that a kind of f iscal
decentralization status should be included in the government’s agenda. While the
government itself sends the signal that the proposed measure should be viable,
the problem remains of how and in what form and degree f iscal decentralization
can be granted.